September 3rd, 2010
10:47 AM ET

Velshi: Job numbers show economy not as bad as you think

As badly as so many people wanted today's job numbers to confirm predictions of a double-dip recession, they didn't.

For perspective: most economists say the U.S. needs to add at least a couple hundred thousand jobs EVERY MONTH. America lost 54,000 jobs in August - that's bad. In fact, the government alone shed 121,000 jobs.

So why the heck am I so pleased? Because the private sector (-i.e. Businesses) ADDED 67,000 jobs. Here I'll do the math: 67,000 private sector jobs created minus 121,000 government jobs lost equals 54,000 jobs lost.

But I'm almost blind to the 121,000 government jobs lost (not, by the way, to the people and families affected by those lost jobs), because job creation is supposed to come from the private sector.

The private sector - private businesses - are the engine of economic growth in this country, and in any free market system. Government spending, and government jobs, help fill the gaps when times are tough and companies pull back, but the economy lives or dies, ultimately, on the strength of its businesses, small or large.

Here's another reason I'm feeling good: every month when we get these numbers, we also get revisions to the previous couple of months, and even THOSE improved. The job loss numbers for July, it turns out, are MUCH lower than we first thought.

Look, enough people out there will disagree, and you'll read and hear lots about why this economy is stuck firmly in the tank. There are some who will scratch their head at the mere idea that a single lost job can be seen as a positive development.

But I see a trend growing here, and its a trend in the most important part of the economy: jobs.

To me, today, the glass is one-quarter full.

Post by:
Filed under: Economy • Jobs
soundoff (99 Responses)
  1. Joe

    Mr. Velshi it's time to get your eye prescription updated.

    September 3, 2010 at 11:12 am | Report abuse |
  2. Mike

    Get me the stuff he's smoking.

    September 3, 2010 at 11:16 am | Report abuse |
  3. HenryCA

    "Help Obama at all cost " is the reason CNN is losing viewer and soon CNN will become a real loser

    September 3, 2010 at 11:16 am | Report abuse |
  4. John

    Velshi should go to work for Obama – Most business's I consult with are not smiling and are not adding jobs.

    September 3, 2010 at 11:16 am | Report abuse |
  5. Joshua

    If you count those who are not looking for jobs as unemployed; than historically you would have to count all the housewives as unemployed. In that case this would be one of the lowest periods of unemployment in history.

    New houses are still an average of 2400 square feet compared to 1400 square feet in 1970. Crime is near a 30 year low. Obesity and average life spans are at all time highs. Reduced government spending means reduced government jobs. Private sector jobs are increasing. Entertainment revenues are near all time highs. Republicans should be happy about this. Democrats should be happy about this. Independants shoudl be happy about this.

    Two things that do need to be fixed: Income for the lower 80% of earners has barely increased in many years. Higher education costs have ballooned.

    September 3, 2010 at 11:17 am | Report abuse |
    • BD

      I agree. Education is so important and the cost should not be the reason we don't get further education. The costs are out of are baseball/football/theater tickets but that is not stopping anyone!!!

      September 3, 2010 at 11:21 am | Report abuse |
  6. Ty

    After a year searching for a job ... I was hired on the spot.... good pay with no benefits tho....just so you know I have worked with no benefits for the last 6 yrs

    September 3, 2010 at 11:19 am | Report abuse |
  7. Reality Check

    Hey Velshi, on what bizarro world do you live. The stimulus you wholeheartedly supported was supposed to lower the unemployment rate, it has gone up ever since it was passed! Study that trend and try and fool us again.

    September 3, 2010 at 11:19 am | Report abuse |
  8. Justin

    Sounds like political posturing not by conservatives, but more like the democrats. Fact is the economy still is in the tank and is going to be there for quite some time, simple as that. Certain political forces who are currently in power want everyone to turn a blind eye to this until Nov 4th. Take this article for what it really is: Propaganda.

    September 3, 2010 at 11:21 am | Report abuse |
  9. dimitri

    is this guy on weed?

    September 3, 2010 at 11:21 am | Report abuse |
  10. Pat

    I'm in complete agreement with Mr Velshi. The wheels are slowly starting to turn again.

    September 3, 2010 at 11:22 am | Report abuse |
    • HenryCA

      You meaned it is going to turn back???? LOL

      September 3, 2010 at 11:34 am | Report abuse |
    • DAryl S

      Yeah, they're turning backward. Sheeple.

      September 3, 2010 at 11:45 am | Report abuse |
  11. Oscar

    I like watching Velshi on CNN. He explains things pretty well, but this here about things getting better common Velshi what are you talking about. Maybe he is a cheerleader for Obama. Obama did tell the American people today to remind ourselves that "BETTER DAYS ARE AHEAD." For Velshi those days are here.

    September 3, 2010 at 11:23 am | Report abuse |
  12. Tom

    I've listened to Velshi before. His knowledge of economics and the business cycle could be written on the head of a pin in giant greek gothic, with room to spare. The worst part of the debt hasn;t even come due yet. A rudimentary knowledge of standard accounting would tell any novice that fact, but it seems to escape the let's-all-hold-hands-and-things-will-be-better crowd who neither reads nor cares to understand or comprehend that vastness of the underlying economic problems not yet faced by the body politic.

    September 3, 2010 at 11:28 am | Report abuse |
  13. Marc

    Why am I not surprised that a CNN contributor is sucking up hard to the Obama regime? Velshi knows very well that the employment numbers are WORSE than he wants to admit. Germany's unemployment rate is at 7% while ours went up to 9.6. What is good about this? Ali and his liberal cronies are jumping for joy because there were ONLY 54,000 jobs lost. Well I guess we should all raise a glass to that. Give me a break

    September 3, 2010 at 11:31 am | Report abuse |
  14. SP Fix

    Get real! The true unemployment numbers are 15%+. (Of course to you they may be 0% as you have a job.)

    September 3, 2010 at 11:34 am | Report abuse |
  15. Don Beal

    This is the way it's supposed to work. In a financial emergency like we have just had, the government needs to keep things going. After the emergency, the stage we now may be in, the private sector should be taking over. Where is the surprise? The Democrats will quite likely take a beating this fall, but it's undeserved. Combat operations have ended in Iraq and the economy is showing signs of recovery. Afghanistan is receiving the attention it should all along. Illegal immigration is not the problem conservatives portray it to be. Illegals are being deported in an lawful, reasonable manner. Muslims have the right to build where they wish. Remember we are fighting alongside Muslims against terrorists. Democrats are doing things right, so if we take a beating, at least we know we have been on the right course. The Republicans will screw things up, then blame the Democrats. It's in the cards.

    September 3, 2010 at 11:36 am | Report abuse |
    • susan

      And on that note, Mr. Beal, I will stop reading these hateful and biased diatribes, and end with yours, a smart and concise analysis......that I happen to agree with.....thank you for your intelligent words.

      September 3, 2010 at 11:55 am | Report abuse |
1 2 3 4